The maintenance expenses on a rental house you own average $200 a month. The house cost $219,000 when you purchased it four year
s ago. A recent appraisal on the house valued it at $239,000. If you sell the house you will incur $14,000 in real estate fees. The annual property taxes are $4,000. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?
Microprudential regulations refers to making sure that the balance sheets or "books" of individual institutions are robust to shocks. Meaning that the regulators that usually engage in this are focusing on the safety and soundness of each customer of a financial institution, by making sure the institutions do not close and the customers lose their money.
A court will disregard the corporate form and pierce the corporate veil in five circumstances: first, if a party is tricked into dealing with the corporation rather than the individual; second, if the corporation is set up to always be insolvent or is thinly capitalized; third, if the corporation is formed to evade an existing legal obligation; fourth, if the corporation fails to follow the statutory corporate formalities ; and fifth, if the personal and corporate interests are commingled so that the corporation has no separate identity.